Vizhinjam Project

8/3/2019 Vizhinjam Project

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VIZHINJAM TRANS-SHIPMENT

HUB

VIZHINJAM TRANS-SHIPMENT

HUB

Presented by:

Bobby John

Chippi Varghese

Presented by:

Bobby John

Chippi Varghese

VIZHINJAM TRANS SHIPMENT HUB



PROJECT DETAILSPROJECT DETAILS

International Deep Water Multipurpose Shipping Hub

Owned by the Govt. of Kerala

Development of a multipurpose seaport with a quay length of 2000

meters in Vizhinjam, a coastal region in Trivandrum, Kerala

To cater primarily for container transshipments, multi-purpose,

break-bulk cargo and liquid bulk cargo.

Also acts as a hub to cater to passenger, container and other cleancargo.

Green-field project offering flexibility in design and expansion

away from urban/city limits

PROJECT DETAILS



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The Vizhinjam International Seaport Ltd. (VISL):

The official Authority in charge. It is a Special Purpose Govt Company, fully

owned by the Govt of Kerala.

The International Finance Corporation (IFC):

A member of the World Bank Group. It is the transaction advisor to VISL.

The International Leasing and Financial Services Ltd. (IL&FS)

It is an Indian Infrastructure and development Company. Acts as a Project Advisor

to Govt. of Kerala to assist in project development and structuring

PROJECT PROPONENT



PROJECT BACKGROUNDPROJECT BACKGROUND

Containerisation of general cargo traffic

Crude Transshipment Purposes

Opportunity in Transshipment Market

Year WorldContainer

Trade(MTEU)

AsianContainer

Trade(MTEU)

IndianContainer

Trade(MTEU)

2000 152 60 2.2

2012 180 64 15

PROJECT BACKGROUND



Why Kerala?Why Kerala?

Vast Coast line of around 580 km.

I major port and 17 minor ports.

Demand ±supply gap of port infrastructure

Strategic Location

Less disruption from Cyclonic activities

WHY KERALA?



Why VIZHINJAM?Why VIZHINJAM?

2km south of world renowned tourist center, Kovalam

Close to Thiruvananthapuram city that has an International airport,

human resource and social infrastructure

Immediacy to national/regional road, rail network and communication

facilities & social infrastucture

Natural all-weather harbour

Proximity to international sea route

Natural water depth upto 24 m in one

nautical mile of coast

Least Littoral transport: low dredging

requirement

Why VIZHINJAM?



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Ports Rank %of

Indian

Goods

Natural

depth

(In metre)

Tidal

Variation

(In metre)

Proximity

to

Main

route

Rent for

one

container

Daily

income

(in

Crores)

Colombo 30 40 14 3 110 kms 150 US $ 3.5

Dubai 13 17 18 1 1500 kms 130 US $ 6

Singapore 02 13 15 1 20kms 130 US $ 27

Kochi < 50 4 11 0.7 200 kms 120 US $ 0.05

Vizhinjam ------ --------- 24 - 30 0.3 3 kms 110 US$ 7

PORTS IN ASIA



Consideration Vizhinjam Vallarpadam

Geographical Location Ideal ;being Open sea Port + Estuarine -

Proximity toexisting Main Line

Nearer + Farther -

Break Water R equired - Not R equired +

Dredging Not R equired + R equired -

Depth of water inchannel

24.00 Mts + 12.5 mts -

Depth of water at Berth 21.00 Mts + 14.00 mts -

Littoral drift / Siltation Minimum if not nil + High -

O&M Expenditure Low + High due to Maintenance Dredging -

Geological Condition Good being R ock / sand + Poor being cohesive soil / silt beingDelta -

Foundation Depth Less + Deep due to poor soil -



FEASIBILIT Y STUD YFEASIBILIT Y STUD Y

IFC commissioned a team of high quality consultants like:

Royal Haskoning Consultants: For State-of-the-art technical design and environmental & social study

Drewry Shipping Consultants : Investment quality market study

International legal team of Allen & Overy (Singapore) and Trilegal (India)

The consultancy services consists of three phases as,

Phase I: Traffic assessment and preliminary viability (traffic studies, surveys, port planning, master

planning and financial viability )

Phase II: Detailed feasibility and project structuring including financial and economic analysis

Phase III: Providing technical inputs to R FP preparation, Draft License Agreement, assistance during

Technical and Financial Closure.

All the phases of the feasibility study were completed successfully. The team also conducted a traffic

analysis of the port sector and a specialized location analysis of the

FEASIBILITY STUDY

Vizhinjam region



PLANNINGPLANNING

Project to follow Landlord Port Model

Dredging, reclamation and provision of basic infrastructure, such as

construction of breakwater and the quay, would be done by the State-owned

Vizhinjam International Seaport Ltd., while the port would be operated by a

private party, which would build the terminal structure and maintain it for the first

30 years.

Port terminal will be developed under Public Private Partnership (PPP) model

wherein the construction and operation of the port terminal would be on Build,

Operate and Transfer (BOT) basis.

PLANNING



PROJECT PROGRESS OVER YEARSPROJECT PROGRESS OVER YEARS

2003: The tendering Process began (build-operate-and-transfer basis for 30 years) and was

once terminated owing to non-receipt of bills.

2005: Tender awarded to a consortium in which Zoom Developers was a member subject to

the GoI¶s clearance.

After an internal inquiry, the Centre declined security clearance for the consortium. The bid

evaluation committee rejected the bid of Zoom Developers after a detailed evaluation and after

pursuing the Law Secretary¶s opinion.

2007(April): A new fresh bidding by the Government. The re-tendering process began with a

global investor Meet .Bids were floated in July 2007 and by January-end 2008, VISL finalized

five bidders.

PROJECT PROGRESS OVER YEARS



cont«cont«

A consortium of Lanco Group and Malaysia¶s Pembinan R edzai was selected as the

developer, but one of the unsuccessful bidders, a consortium led by Mumbai-based

Zoom Developers Ltd., moved court against Lanco¶s selection.

Based on the Supreme Court Verdict, the Kerala Government had decided to re

evaluate the tender submitted by the Mumbai based Zoom Developers for the

proposed container trans-shipment terminal at Vizhinjam.

On April 12th 2009, the Supreme Court quashed the petition filed by the Zoom

Developers against the award of bid for the project to Lanco by GoK.

2011 Feb 15th: VISL signed Memorandum of Understandings with SBT R VNL(R ail

Vikas Nigam Ltd) and KSEB

cont«cont«Cont«.



PROJECT DEVELOPMENT PLANPROJECT DEVELOPMENT PLAN

PhaseBerth Length

(Meters)

Capacity

(Million TEUs)

Project Cost

( Billion Rs)

Phase-I 1245 1.8 23.9

Phase-II 1900 3.0 11.0

Phase-III 2860 5.3 18.6

Total 53.5

PROJECT DEVELOPMENT PLAN



Project FinancialsProject Financials

CAPITAL INVESTMENT AMOUNT (in Crore Rs)

Equity (GoK) 1130

Bonds (GoK) 910

Institutional Investors 810

Loans (SBT) 2500

Total 5350

Institutional Investors - HUDCO, LIC

A fund of Rs 450 Cr for external support infrastructure has already been disbursed

PROJECT FINANCIALS



Environmental & Social Impact AnalysisEnvironmental & Social Impact Analysis

A R apid Environmental Impact Assessment(R EIA) Study on the project was carried out in

2004 by L&T R amboll yielding the following findings:

Improvement in socio-economic profile of the people in terms of employment opportunities

Benefits to tourism sector .

Negligible environmental adverse impact as the entire port is developed on reclaimed land.

In the proposed stretch, no significant fishing zones are reported.

Benefits to fishermen because of improved connectivity, scope for exports, etc

Direct short term employment benefit during construction

Temporary beneficial effects on restaurants, hotels, etc due to presence of contractors.

Environmental & Social Impact Analysis



Disturbance to commercial fishing operations

Large work force during construction phase would create safety

issues

Disturbance to tourism activity

Access to local beach limited



CURRENT STATUSCURRENT STATUS

The bid made by the Welspun Consortium was accepted by V

ISL (13

th

Feb 2012).Concession Period is 30 years.

R evised Cost of the project is 4010 crore R s, out of which, the port operator

(Welspun) should invest 970 crore R s. It would get back R s.479.54 crore as grant

from the State government towards operating expenses over 16 years.

The government has initiated measures to acquire 48 hectares of land for laying a

rail link from Vizhinjam to Neyyattinkara

No aids from Central Govt. (due to infeasibility of the condition of 51% equity)

Fugro Geotech will conduct Geo-Technical studies once the financing is decided.

First stage of project is to commence in March, 2012

Expectation of flagging off first container ship in 2015

CURRENT STATUS



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TH ANK YOU«««««..

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Vizhinjam Project